British 'absent' from Battersea Power Station auction

Battersea power station in London. Photograph: Miguel Medina/AFP/Getty Images

British companies were "noticeable by their absence" in the hotly contested auction of Battersea Power Station, according to the lead agent on the deal.

The derelict site was sold this week for £400m to a Malaysian consortium which said that it would take 15 years to transform the listed building and surrounding land into £8bn worth of housing, shops and offices.

But Stephan Miles-Brown at Knight Frank said: "Apart from Chelsea Football Club via [property tycoon Mike Hussey's] Almacantar, it was a bit disappointing that no UK developer, housebuilder or institution was in there at the end. On the other hand it's good to see that London can attract foreign capital.

"The likes of British Land and Berkeley Group were interested, but were put off by the substantial upfront investment. "The entry cost is high before you've laid a brick. It probably would take a sovereign wealth fund or a large multinational to bankroll that."

Miles-Brown said that "20 years ago there weren't any foreign investors" when construction projects in Britain were dominated by UK housebuilders such as Bovis Homes, George Wimpey or Taylor Woodrow, pension funds such as Talbots, and City institutions including the Pru and Legal & General.

His comments came as the Shard, the latest addition to London's skyline which was funded by the state of Qatar, was inaugurated by the Qatari prime minister and Prince Andrew, followed by a laser show in the evening. The 309.6m skyscraper, designed by Renzo Piano, is the tallest building in western Europe.

"Qatar is bankrolling the Shard. Is that set to continue? Yes, I imagine it's a trend," said Miles-Brown. "Maybe it's a trend that's continuing rather than new."